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Hello, I'm working on the Freelance section.I have parts that I bought and sold them directly to customers at cost. Do these go in the "Supplies Expenses" section?

Forum|Forum|2 years ago
April 18, 2023
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I suspect these kinds of expenses don't go here, but maybe more for items that I don't re-sell?

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Best answer by DawnC

You can use the Supplies expense for those parts you re-sold. If you are a small business taxpayer, you can choose not to keep an inventory. You qualify as a small business taxpayer if you (a) have average annual gross receipts of $27 million or less for the 3 prior tax years, and (b) are not a tax shelter (as defined in section 448(d)(3)).

DawnCAnswer

You can use the Supplies expense for those parts you re-sold. If you are a small business taxpayer, you can choose not to keep an inventory. You qualify as a small business taxpayer if you (a) have average annual gross receipts of $27 million or less for the 3 prior tax years, and (b) are not a tax shelter (as defined in section 448(d)(3)).

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